Last Updated: April 2026
Millions of Americans live abroad in retirement — drawn by lower cost of living, better healthcare, warmer climates, or family ties. A key question for all of them is whether they can continue receiving their Social Security benefits from overseas. The good news is that the Social Security Administration (SSA) sends payments to virtually every country in the world, with a handful of exceptions. The more nuanced questions involve how benefits are taxed, how foreign pensions interact with Social Security via the Windfall Elimination Provision, and what Totalization Agreements mean for expats who worked in multiple countries.
This guide provides a comprehensive overview of Social Security for US expats in 2026 — including which countries receive payments, how US federal taxes apply to Social Security income overseas, the 30 Totalization Agreement countries where credits transfer, the WEP penalty for foreign pension recipients, and the Medicare question that confuses many expat retirees.
The SSA publishes an official list of countries where US Social Security payments are permitted, suspended, or restricted. As of 2026, the SSA will not send payments to the following countries:
For all other countries — including all of Western Europe, Canada, Australia, Mexico, Japan, Southeast Asia, and Latin America — the SSA will send payments via direct deposit to a US bank account or, in many countries, directly to a local bank account. The SSA's international direct deposit program covers most major banking systems.
Practically, most expat retirees maintain a US bank account (checking or savings) and transfer funds internationally as needed, or have the SSA send payments directly to a local bank in countries where this is supported.
US Social Security benefits are subject to US federal income tax, but the amount that is taxable depends on your 'combined income' — a calculation used specifically for Social Security taxation:
Combined Income = Adjusted Gross Income + Non-taxable interest + 50% of Social Security benefits
| Filing Status | Combined Income | Taxable Portion of Benefits |
|---|---|---|
| Single | Below $25,000 | 0% |
| Single | $25,000 – $34,000 | Up to 50% |
| Single | Above $34,000 | Up to 85% |
| Married Filing Jointly | Below $32,000 | 0% |
| Married Filing Jointly | $32,000 – $44,000 | Up to 50% |
| Married Filing Jointly | Above $44,000 | Up to 85% |
Note that foreign-source income increases combined income even if it's not otherwise taxable in the US (e.g., foreign pension income in a treaty-protected country). This means expat retirees with modest foreign pensions or rental income can easily find their Social Security benefits pushed into the 85% taxable bracket.
Some US tax treaties contain provisions that exempt Social Security benefits from US tax for residents of the treaty country — for example, the US-Germany and US-UK treaties have relevant provisions. Always review the applicable treaty.
A Totalization Agreement is a bilateral treaty between the US and another country that coordinates Social Security coverage to prevent workers from paying Social Security taxes to both countries simultaneously. As of 2026, the US has Totalization Agreements with 30 countries, including:
| Region | Countries with US Totalization Agreements |
|---|---|
| Europe | UK, Germany, France, Italy, Netherlands, Belgium, Sweden, Norway, Denmark, Switzerland, Austria, Portugal, Spain, Czech Republic, Poland, Slovakia, Hungary, Luxembourg, Finland, Greece, Ireland |
| Americas | Canada, Chile, Brazil, Uruguay |
| Asia-Pacific | Japan, South Korea, Australia |
Key benefits of Totalization Agreements:
Notable absences: India, China, and Mexico do not have Totalization Agreements with the US. This means workers who split careers between the US and these countries may not accumulate enough credits for benefits in either system — and pay into both without being able to combine credits.
The Windfall Elimination Provision (WEP) is a Social Security rule that reduces benefits for workers who receive a pension from employment not covered by Social Security — including most foreign pensions from countries without a Totalization Agreement, and some US public sector pensions.
How WEP affects expats:
A related provision, the Government Pension Offset (GPO), applies to spouses and widows/widowers receiving a pension from a non-covered government employer. It can reduce spousal or survivor Social Security benefits by up to two-thirds of the foreign pension amount.
The Social Security Fairness Act of 2024 was signed into law in January 2025, repealing both WEP and GPO for certain beneficiaries — primarily affecting US public sector workers. However, WEP as it applies to private foreign pensions (work not covered by a Totalization Agreement country) remains in effect. Confirm your specific situation with the SSA.
This is a common source of confusion and disappointment for expat retirees: Medicare generally does not cover medical care received outside the United States. With very limited exceptions (emergency care in Canada or Mexico when it is closer than a US hospital), Medicare will not pay foreign hospital or doctor bills.
What this means for expat retirees:
The premium decision is important: if you do not enrol in Part B when first eligible (at 65), you face a permanent 10% premium penalty for each year you delay — meaning if you return to the US in your 70s, you'll pay significantly more. Most financial planners recommend that expat retirees maintain Part B enrollment even if unused, to avoid the late enrollment penalty upon return.
The practical solution for medical care abroad is private international health insurance — typically costing $2,000-$8,000 per year depending on age and coverage — which covers hospitalisation and outpatient care in the country of residence.
Many expat retirees receive both a US Social Security benefit and a foreign pension from a country where they worked during their career. The interaction between these two income streams has several important effects:
Planning ahead before retirement — including considering Roth conversions to reduce future AGI, timing of Social Security filing age (62 vs 67 vs 70), and structuring foreign pension elections — can significantly reduce the combined tax burden. A CPA specialising in US expat retirement is invaluable for this planning.
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Get Your US Expat Taxes Filed →Yes. The SSA sends Social Security payments to residents of Portugal, France, the UK, and virtually all Western European countries. You can receive payments via direct deposit to a US bank account or, in many cases, directly to a local bank account in your country of residence. The SSA provides an online 'Payments Abroad Screening Tool' to confirm eligibility for your specific country. Portugal, France, and the UK all have US Totalization Agreements, which may also affect how Social Security credits are coordinated.
Yes — US Social Security benefits remain subject to US federal income tax regardless of where you live. The amount taxable depends on your 'combined income' (AGI + non-taxable interest + 50% of SS benefits). Up to 85% of benefits can be taxable if combined income exceeds $34,000 (single) or $44,000 (married filing jointly). Some US tax treaties (Germany, UK, and others) contain provisions that may reduce or eliminate US taxation of Social Security for treaty country residents — review the applicable treaty with a tax professional.
A Totalization Agreement is a bilateral treaty that coordinates Social Security coverage between the US and another country, preventing workers from paying into both systems simultaneously and allowing credits earned in each country to be combined to qualify for benefits. As of 2026, the US has Totalization Agreements with 30 countries, including the UK, Germany, France, Italy, Canada, Australia, Japan, and South Korea. Notably, India, China, and Mexico do not have agreements with the US — workers splitting careers between these countries and the US may not qualify for benefits in either system.
WEP reduces your Social Security benefit if you receive a pension from employment that was not subject to US Social Security taxes — including most foreign pensions from non-Totalization Agreement countries. The maximum reduction in 2024 is $587 per month. The WEP reduction is graduated based on your years of substantial US Social Security covered earnings: 30+ years of substantial earnings eliminates WEP entirely; fewer years results in proportional reduction. WEP does not apply if your foreign pension is from a Totalization Agreement country. Note: The Social Security Fairness Act of 2025 repealed WEP for certain US public sector pensions, but private foreign pensions remain subject to WEP.
If you work for a US employer with a posted assignment abroad, your employer can continue to withhold US Social Security taxes and you continue accumulating US Social Security credits — even while working overseas. Self-employed US citizens working abroad also pay US self-employment tax (which includes Social Security). However, if you work for a foreign employer in a country with no Totalization Agreement, you typically pay into the foreign country's social security system (if any) but not US Social Security — and those years do not count toward your US benefit.
Medicare Part B coverage does not apply to medical care received abroad (with very limited exceptions), but most financial advisors recommend maintaining Part B enrollment to avoid the permanent 10% premium penalty per year of delayed enrollment that applies if you return to the US and enrol late. For 2025, Part B premiums are approximately $185 per month. If you are confident you will never return to the US and never use Medicare, you could drop Part B — but the decision is irrevocable in the sense that re-enrolling later will cost significantly more.
Renouncing US citizenship does not eliminate your entitlement to Social Security benefits you have already earned through work contributions. If you have sufficient work credits (40 quarters), you can continue receiving Social Security payments to your country of residence, assuming it is not one of the restricted countries. However, as a non-citizen non-resident, a 30% withholding tax applies to Social Security benefits unless reduced or eliminated by a tax treaty or if you are a citizen of a qualifying country under SSA rules. Check the SSA's 'Payments Abroad Screening Tool' and review applicable treaty provisions.